HF 3904

as introduced - 91st Legislature (2019 - 2020) Posted on 02/27/2020 01:46pm

A bill for an act
relating to commerce; regulating certain conduct relating to the timing of money
transmission; amending Minnesota Statutes 2018, section 53B.18.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2018, section 53B.18, is amended to read:

53B.18 PROHIBITED PRACTICES.

new text begin (a) new text end No licensee shall:

(1) fail to comply with chapter 345 as it relates to unclaimed property requirements;

(2) refuse to indemnify an instrument holder for any misappropriation of money caused
by any of its authorized delegates in conducting activities on behalf of the licensee for whom
it acts as an authorized delegate; new text begin or
new text end

deleted text begin (3) fail to transmit all money received for wire transmission in accordance with the
purchaser's instructions within five days; or
deleted text end

deleted text begin (4) deleted text end new text begin (3) new text end fail to comply with section 53B.27.

new text begin (b) A licensee must transmit all money received for transmission in accordance with the
sender's instructions within five business days of the date the licensee receives the money
from the sender unless:
new text end

new text begin (1) otherwise ordered by the sender;
new text end

new text begin (2) the licensee or its authorized delegate has reason to believe a crime has occurred, is
occurring, or may occur as a result of transmission; or
new text end

new text begin (3) the transmission is payment for goods or services.
new text end

new text begin (c) A licensee must conspicuously state in an agreement with a merchant to transmit
money from a sender for goods or services:
new text end

new text begin (1) that the licensee has the authority to place a hold on or delay the transmission of a
sender's money for more than five business days; and
new text end

new text begin (2) the general circumstances under which a transmittal may be subject to a hold or
delay.
new text end

new text begin (d) A licensee that receives money from a sender for transmission to a merchant to pay
for goods or services must transmit the money to the merchant within the time frame agreed
upon in the merchant's agreement with the licensee.
new text end

new text begin (e) If a licensee fails to transmit money received for transmission in accordance with
this section, the licensee must respond to inquiries by the sender or recipient with the reason
for the failure unless the response:
new text end

new text begin (1) violates the licensee's security requirements;
new text end

new text begin (2) results in the disclosure of a sender or recipient's private information to a third party;
or
new text end

new text begin (3) requires disclosure of the licensee's confidential, proprietary, or trade secret
information.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2020, and applies to
transmissions and merchant agreements with licensees executed on or after that date.
new text end